Total will acquire the 20% stake from the promoter group’s 74.9% holding in AGEL, the Adani Group said in a statement on Monday.
This is Total’s third deal with the Adani Group and indicates the French major is betting big on India’s energy transition based on, as Total CEO Patrick Pouyanne said, “the pillars of renewable energy and natural gas”.
The AGEL stock closed at Rs 953.5 on the BSE on Monday, up from its previous close of Rs 947.6, after dipping to Rs 921 intraday.
Total had in February 2020 struck a deal with AGEL to acquire a 50% stake for $510 million in a new joint venture company they formed. The deal entailed AGEL transferring its operating solar assets with a total capacity of 2,148MW to the joint venture. AGEL was to retain the remaining 50% ownership in the joint venture.
Total began its relationship with Adani Group in 2018 by investing in Adani Gas, the group’s subsidiary for city gas distribution, LNG (liquefied natural gas) and gasmarketing businesses.
“This agreement (with AGEL) is an important step in our alliance with the Adani Group and our common vision and goals with respect to the importance of access to low carbon energy in India. Given the size of the market, India is the right place to put into action/to deploy our energy transition strategy based on two pillars — renewables and natural gas,” the statement quoted Pouyanne as saying.
“We have a shared vision of developing renewable power at affordable prices to enable a sustainable energy transformation in India. We look forward to working together towards delivering India’s vision for 450GW renewable energy capacity by 2030,” the statement quoted Adani Group chairman Gautam Adani as saying.
AGEL debuted in 2015 with a 648MW solar project, the world’s largest single-location unit, at Kamuthi in Tamil Nadu. It has over 14.6GW of contracted renewable capacity, with 3GW in operation, another 3GW under construction and 8.6GW under development. The company aims to achieve 25GW of renewable power generation by 2025.